Maruti Suzuki, the largest passenger carmaker in India, is likely to re-focus in the European market and compete against other auto leaders, including Fiat, Citroen, Peugeot and Toyota in the small car category.
Small cars are surging in popularity in Europe after the significant rising of fuel prices, congestion and new laws that penalize high emissions were observed. This fact boosted Maruti Suzuki to produce tiny cars in the “A segment” to be exported by the end of next year.
According to Michael Tyndall, European auto and component analyst for Nomura in London, “There is a trend towards downsizing in the market… There’s almost a divergence. The premium segment is growing strongly. At the same time the small car segment is growing. Everything else in the middle is suffering.”
Suzuki created A-Star, a new five-door hatchback, which will comply with strict Euro 5 emission standards. It will have a one-liter aluminum engine. The vehicle will be sold in Europe under the Suzuki brand through the company’s network of dealers. About 150,000 A-Star units will be rolled out within a few years from a plant near Delhi. Around 100,000 of which will be export, with the rest distributed in the Indian market.
The involvement of India will not be limited to the A-Star production. A-Star will be the first Suzuki car designed with consideration to Indians based on Maruti Suzuki’s research and development unit.
However, the sales in India will still be the main focus of Maruti Suzuki, according to automotive research group CSM Worldwide. India is the world’s fastest growing automotive market for passenger cars and light commercial vehicles.
In 2006, Maruti Suzuki was able to have almost 675,000 cars sold, of which 39,200 units were exported. The company is planning to produce over a million cars in India by 2010. But, the plans will need the Indian government to improve its ailing infrastructure, said Osamu Suzuki, chairman of Suzuki. He said that India’s outdated and crowded ports cramp plans for exports; subsequently, the railways, roads and highways must be improved as well.
Last year, Maruti Suzuki has cut back on exports to Europe, considering that it already has a factory in Hungary. It just then focused on the Middle East, south Asia and Africa.
The re-focus requires Maruti Suzuki to give extra effort in maximizing the production at its new factory in India. That may include greater manpower to produce quality parts, as good as Acura Legend alternator, compatible for the car they intend to build.
Small cars are surging in popularity in Europe after the significant rising of fuel prices, congestion and new laws that penalize high emissions were observed. This fact boosted Maruti Suzuki to produce tiny cars in the “A segment” to be exported by the end of next year.
According to Michael Tyndall, European auto and component analyst for Nomura in London, “There is a trend towards downsizing in the market… There’s almost a divergence. The premium segment is growing strongly. At the same time the small car segment is growing. Everything else in the middle is suffering.”
Suzuki created A-Star, a new five-door hatchback, which will comply with strict Euro 5 emission standards. It will have a one-liter aluminum engine. The vehicle will be sold in Europe under the Suzuki brand through the company’s network of dealers. About 150,000 A-Star units will be rolled out within a few years from a plant near Delhi. Around 100,000 of which will be export, with the rest distributed in the Indian market.
The involvement of India will not be limited to the A-Star production. A-Star will be the first Suzuki car designed with consideration to Indians based on Maruti Suzuki’s research and development unit.
However, the sales in India will still be the main focus of Maruti Suzuki, according to automotive research group CSM Worldwide. India is the world’s fastest growing automotive market for passenger cars and light commercial vehicles.
In 2006, Maruti Suzuki was able to have almost 675,000 cars sold, of which 39,200 units were exported. The company is planning to produce over a million cars in India by 2010. But, the plans will need the Indian government to improve its ailing infrastructure, said Osamu Suzuki, chairman of Suzuki. He said that India’s outdated and crowded ports cramp plans for exports; subsequently, the railways, roads and highways must be improved as well.
Last year, Maruti Suzuki has cut back on exports to Europe, considering that it already has a factory in Hungary. It just then focused on the Middle East, south Asia and Africa.
The re-focus requires Maruti Suzuki to give extra effort in maximizing the production at its new factory in India. That may include greater manpower to produce quality parts, as good as Acura Legend alternator, compatible for the car they intend to build.
